ECONOMICS
CONSUMERS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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budget line
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budget set
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consumption bundle
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none of these
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Detailed explanation-1: -Consumers are limited by their income and the prices of goods. Budget Constraint: It is the set of all bundles that can be purchased with a given level of income and prices, when all income is spent.
Detailed explanation-2: -The correct answer is Budget. The budget set is simply a collection of all goods that a consumer can purchase at the prevailing market price using his/her income.
Detailed explanation-3: -Answer and Explanation: The budget constraint depicts the combinations of goods that a consumer can buy within the given income. Thus, the budget constraint or budget line shows all bundles of goods purchased at given prices if the entire income is spent.
Detailed explanation-4: -A Budget Line is the borderline that contains the Budget Set. A Budget Set is the total combination of different sets of two goods that helps draw the Budget Line. Combination of Goods. The different combinations of two goods are equal to the income of the consumer.